FCA’s latest Handbook Notice confirms: changes to the FSCS MELL effective from 1 April; amendments to Consumer Duty rules: these changes result from questions FCA has received. The key clarifications confirm how...
Author - Emma Radmore
Emma Radmore
FCA updates on pension transfer redress calculations
FCA has updated its rules and guidance on calculating pension transfer redress, both to correct an error in the CPI stated and to clarify its rules on consequential losses and the valuation date.
PSR publishes Annual Plan
PSR’s Annual Plan for 2023/24 sets an ambitious work programme, building on existing initiatives. One priority will be shaping the delivery of the New Payments Architecture. The PSR says it needs to evolve its...
Government publishes Economic Crime Plan 2
The Home Office and Treasury have published “Economic Crime Plan 2“, a 3 year plan to build on existing and create new initiatives in fighting economic crime. Key initiatives and plans include: getting 475...
Government updates green finance strategy
The Government has published its promised updated Green Finance Strategy, updating the previous 2019 strategy. It aims to reinforce and expand the UK’s position as a world leader on green finance and investment...
Government consults on ESG rating providers regulation
Treasury is consulting on a future regulatory regime for ESG ratings providers. The consultation follows the announcement as part of the Edinburgh reforms that Treasury wants to ensure improved transparency and good...
Treasury and regulators consult on SMCR
Treasury has published a call for evidence and PRA and FCA have published a discussion paper on the effectiveness of the SMCR. The papers, which result from the announcement of the Edinburgh Reform package, seek views...
FCA updates on SDR and labels consultation
FCA’s consultation on SDR and investment labels closed on 25 January 2023. It received around 240 responses, which were largely supportive. FCA intends to publish its Policy Statement during Q3. It notes that it...
Government publishes AI white paper
The Government has published a white paper setting out a new approach to regulating AI in such a way as to build public trust in new technologies. The paper proposes 5 principles to guide the use of AI in the UK and...
FPC highlights NBFI resilience
The headlines from the FPC’s March report are: that overseas bank failures have increased investor caution; UK banks are resilient and are strong enough to support households and businesses; UK household and...
BoE and PRA feed back on cyber stress test results
The BoE and PRA have written to FMIs and PRA-regulated firms setting out the thematic findings from the 2022 Cyber Stress Test. The test looked at a hypothetical data integrity scenario in retail payments in which a...
NCA updates SARs reporter booklet
NCA has published a March 2023 edition of its SARs reporter booklet. The update includes a snapshot of examples of the work enforcement agencies do in using SAR intelligence, using sanitised examples.
Draft FPO amendments
Draft amendments to the FPO have been published, which would: create a new exemption for crypto exchange and wallet providers who are registered with FCA for AML purposes but not authorised under FSMA, which will allow...
Treasury and FCA to update criminal market abuse regime
Treasury and FCA have completed their review of the criminal market abuse regime and have concluded that there are a number of areas in which it would benefit from an update. The criminal regime has barely been updated...
Lords Committee finishes FSM Bill debate
The tenth and final sitting in the House of Lords Grand Committee on the FSM Bill took place on 23 March. The discussion moved to: adding new regulated activities in relation to climate and nature offsets, tabled by...
PSR confirms APP scam data publication plans
PSR has confirmed that it will direct 14 large UK PSPs to collect and provide APP scam data to it which will cover 95% of transactions. The data will show: the proportion of APP scam victims who do not get reimbursed...
Government responds on Silicon Valley UK rescue
The BoE and Government have responded to the Treasury Committee’s queries on the collapse and subsequent purchase by HSBC of Silicon Valley Bank UK. BoE was asked how the bank was supervised before its collapse...
APP fraud podcast
Listen to the first in our series of podcasts on APP Fraud.
The podcast discusses APP fraud’s scope and growth, banks’ duties and legislative proposals to tackle it.
FSM Bill 9th Grand Committee session
The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...
Parliament debates AML levy proposals
A delegated legislation Committee in Parliament debated the draft Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2023, which Andrew Griffith described as the final step in implementing the levy by...
PSR calls for views on LINK Direction review
PSR is carrying out its first annual review of its Specific Direction 12, designed to ensure that LINK has a broad geographic spread of free to use cash machines and meets service-user needs. It issued the direction...
FCA updates on Climate Financial Risk Forum
The Climate Financial Risk Forum, established in 2019, is currently nearing the end of its third session, which started last April. It has published a third round of guides to help the financial sector develop its...
Banks respond to Treasury Committee on savings rates
The Treasury Committee had written to Barclays, HSBC, Lloyds and NatWest as part of its inquiry into retail banks, asking them about savings rates. As a result of the responses it has now written to the FCA. The...
FOS publishes H2 2022 complaints data
FOS has published data on complaints received between July and December 2022. It saw a slight increase in complaints over the first half of the year, and received nearly 80,000 new complaints. It upheld 34% of...
BBRS SME Liaison Panel closes
Antony Townsend has resigned as Chair of the BBRS SME Liaison Panel, saying it has been very difficult for him to make progress and he has been disappointed at some of the BBRS responses to the Panel’s concerns...
FCA speaks on simplified advice and advice/guidance distinction
Therese Chambers, director of Consumer Investments at FCA, has spoken on the progress FCA has made in the past 10 years on getting a well working consumer investment market. While noting the successes of the RDR, she...
FCA updates on operating service metrics
FCA has updated its operating service metrics to include performance from the periods October to December 2022 and January/February 2023. FCA notes that the latest metrics show 12 green, 5 amber and 2 red –...
FOS updates award limits
FCA has confirmed new limits for FOS awards, effective from 1 April. These are: £415,000 for complaints referred to FOS on or after 1 April 2023 about acts or omissions by firms on or after 1 April 2019; £190,000 for...
LSB updates CRM Code
The LSB has updated the CRM Code, by making amendments that require signatory firms receiving scam payments to play a greater role in protecting the customer by trying harder to stop any money actually changing hands...
Regulators respond to FINMA action
Following the announcement from the Swiss authorities of a range of actions to support financial stability in the wake of the concerns over Credit Suisse, FCA has indicated that the UK regulators are minded to approve...
OFSI updates penalties guidance
OFSI has updated its guidance on assessing sanctions breaches to include how it assesses penalties where there has been an incorrect assessment of ownership and control of an entity. The additions to the guidance...
FCA sends out Consumer Duty survey
FCA has sent its promised Consumer Duty firm survey to a sample of small and medium sized firms. It wants to use the survey (which is anonymous) to understand the progress firms are making towards implementation.
Government responds on Fraud
The Government has published its response to the House of Lords Fraud Act 2006 and Digital Fraud Select Committee report on “fighting fraud: breaking the chain”. Among its responses to the recommendations...
Andrew Griffith speaks on Edinburgh Reforms progress
Economic Secretary to the Treasury, Andrew Griffith, has spoken on the progress of various elements of the Edinburgh reforms including giving his update on the FSM Bill. He focussed on the new duty on PRA and FCA to...
FCA authorises first Long Term Asset Fund
FCA has authorised the first LTAF – a new category of open-ended authorised fund which is designed to invest efficiently in long term assets.
FCA to collect economic crime levy from July
FCA is to collect the Treasury’s economic crime levy from the firms for whom it is responsible (that is, relevant regulated firms and those registered with FCA for AML supervision). This year’s levy will...
Treasury Committee writes to FCA on greenwashing
The Treasury Committee has described FCA’s proposals on sustainability disclosures intended to prevent investment funds from greenwashing as “lopsided”. It has written to FCA asking it to conduct a...
Treasury announces start of investment research review
Andrew Griffith is to announce the start of the review of the UK’s research and investment landscape promised as part of the Edinburgh reforms – to start on 13 March. The review is looking to understand the...
FSM Bill Committee day 7
On the seventh day of debate in the Lords’ Grand Committee, the Committee: continued its debate on climate issues – including on PRA risk weightings and solvency capital requirements, and a ban on regulated...
FCA takes further action on crypto ATMs
FCA has undertaken an exercise with the Metropolitan Police which has resulted in the discovery of several illegally operating crypto ATMs in East London. FCA is now working with the National Economic Crime Centre to...
Ombudsman News highlights Business Support Hub
The latest edition of FOS’ Ombudsman News covers the consultation featured separately in FIN on the reporting of business-specific data, and discusses how the formerly known “technical desk” has now...
SME liaison panel gives BBRS views
Antony Townsend, Chair of the SME liaison panel, has responded to the BBRS Post Implementation Review. The panel is pleased the report recognised the issues the scheme faced. However, the panel is concerned that the...
House of Lords updates on FSM Bill
Ahead of the seventh day of debate on the FSM Bill in the Grand Committee, the House of Lords has published: a new list of amendments; a letter promised by Baroness Penn to all members on matters raised at the second...
FCA publishes anonymous warning notices
FCA has published a “warning notice statement” which discloses that it gave two individuals warning notices in September 2022 of its intention to fine them in respect of conduct between 1 October 2015 and 31...
JMLSG updates guidance
JMLSG has submitted several updates to its guidance to Treasury for approval. There is one update to Part I, relating to Chapter 6, and highlighting the ability of FOS to effectively handle complaints with a money...
Treasury Committee unimpressed with scam reimbursement proposals
The Treasury Committee has described the proposals for the PSR to require banks and building societies to fully reimburse victims of APP scams where the loss is over £100 as “half baked”. The Treasury Sub...
FOS consults on business-specific data publication
FOS is consulting on a longer-term or permanent way to incentivise businesses to settle complaints pro-actively before FOS issues its opinion. The consultation follows an initiative FOS launched for a short time in late...
Firm application for JR of FOS decision rejected
Charles Street Securities Europe LLP had applied for judicial review of a FOS decision. FOS had upheld a complaint made by a retired businessman against the firm. The client had originally signed an agreement with the...
FCA continues Consumer Duty preparation support
FCA has published a further set of portfolio “Dear CEO” letters aimed at helping firms to prepare for the final push towards Consumer Duty implementation. Its latest series of letters cover: motor finance...
Parliamentary group looks at business banking redress
An All-Party Parliamentary Group has published a report looking at compensation schemes for business banking. The report notes that bespoke ad hoc schemes have been established following specific banking scandals but...
Economic Affairs Committee looks at BoE independence
A new Economic Affairs Committee enquiry is looking at how BoE has worked in the 25 years since the Bank of England Act 1998 gave it independence and reformed its structure, responsibilities and functions. The Committee...
FCA publishes quarterly consultation
FCA has published its regular quarterly consultation on miscellaneous amendments to its Handbook. All it is consulting on is some proposed additional guidance to the Annual Claims Management Report form and minor...
FCA to review trade data market competition issues
FCA has conducted a review that shows that competition in some parts of the wholesale data market is not working as well as it should. It has published a report showing the shortcomings of the current marketplace in...
Treasury calls for evidence on ring-fencing
Treasury has published a call for evidence looking at the practicalities of aligning the ring-fencing and resolution regimes for banks. The proposals build on the Skeoch review, which found that the benefits of ring...
Sixth day of FSMB debate in Lords’ Committee
The Committee stage in the Lords’ has completed its sixth day of debate on the FSM Bill. The Committee spent 2.5 hours debating a set of proposals around the creation of an office for Financial Regulatory...
Regulators update Regulatory Initiatives Grid
The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...
FCA updates BSPS tools for firms
FCA has updated its website summarising the steps firms involved in advice on BSPS transfers must take to comply with the FCA redress scheme. The page includes links to the DBAAT template and instructions, and notes...
PRA consults on liquidity, disclosure and proportionality
BoE/PRA has issued consultations on: liquidity and disclosure requirements for simpler-regime firms. The changes, the first in a set of changes aimed at helping firms deemed to fall within scope, would: set new...
FCA faces judicial review over climate statements in approved prospectus
ClientEarth has announced the filing of an application for judicial review of FCA’s decision to approve a prospectus which it alleges failed properly to describe climate-related risks faced by the company. It says...
Green Finance Institute calls for single taxonomy
The Green Finance Institute is concerned that there are now over 30 taxonomies either finalised or under discussion, and that this “regulatory proliferation” is undermining efforts to promote cross-border...
Conclusions from FATF plenary
FATF held its latest plenary session from 22-24 February. Key decisions and updates were: To suspend the membership of the Russian Federation; Adding South Africa and Nigeria to the list of jurisdictions under increased...
PSR speaks on tackling APP fraud
Chris Hemsley has spoken of PSR’s role in regulating all UK payment systems and the importance of collaboration in tackling fraud. His speech focussed on APP fraud, noting the significant problem it poses and...
FCA publishes more Consumer Duty letters
FCA has published three more letters in its series of letters to firms on preparation for the Consumer Duty. The latest set relate to: debt advice firms; debt purchasers, debt collectors and debt administrators; and...
ABI and Fairer Finance announce “guide to clear communications”
ABI has worked with Fairer Finance to produce a guide to clear communications covering all aspects of how insurers communicate with their customers. Key recommendations include: sentences should be under 29 words;...
FSMB Committee debates regulatory accountability
The fifth day of debate in the Grand Committee on the FSM Bill focussed on regulatory accountability and a set of amendments proposed by Baroness Bowles. The amendments were withdrawn as they had predominantly been...
Court requires FOS to review decision
The High Court has taken the relatively rare step of ordering FOS to review a decision. The complainant, Mr Moniak, had been a customer of Barclays. Following an inheritance in 2010, a total of £500,000 was paid into...
FLA publishes consumer credit research
The Finance and Leasing Association has published a research paper that looks at what improvements consumers would like to see in consumer credit. While many respondents thought the products and markets are functioning...
FSB outlines priorities for the year
The Financial Stability Board has written to G20 Finance Ministers and Central Bank Governors outlining its priorities for the year. At the G20 meeting on 24-25 February, it plans to present papers on: non bank...
FCA updates on Link action
FCA is in discussions with the Link Group and Link Fund Solutions over whether its proposed enforcement action against LFS can be resolved by agreement – specifically, that consumers affected by the suspension of...
FCA consults on asset management regulation
FCA is seeking views on what regulatory change might help the UK asset management industry while supporting investors and boosting competition. It has issued a wide-ranging discussion paper setting out possible areas...
New AML guidance for art market participants
The British Art Market Federation has published guidance for its members on compliance with AML requirements. Treasury has approved the guidance, which is to be read alongside HMRC guidance. The guidance explains who...
FCA asks for information on concerning pension transfer requests
FCA has asked pension schemes or trustees to report to them instances when they have had concerns about or have refused a pension transfer. It is seeking information on: individuals who provide unauthorised advice on...
UN updates principles for responsible banking
The UN Environment Programme has updated its Responsible Banking principles aimed at strengthening climate ambition. At a meeting last year, signatories decided the Principles’ climate ambition should be...
5th day of FSM Bill Grand Committee debate to start
Day 5 of the scheduled 6 days of the Lords’ Grand Committee debate on the FSM Bill takes place on 20 February. To date, Parliament has picked out that key amendments debated have covered: revocation of retained...
FCA re-recognises LSB business lending code
FCA has renewed its recognition of LSB’s Standards of Lending Practice for business customers as from 6 February. The recognition expires on 10 February 2026. The standards address lending to SMEs with a turnover...
Latest FOS data shows rise in complaints
FOS has published its complaints data from Q3, 2022/23, which shows a rise of 6,000 in new complaints, with the most significant rise relating to running account credit but current accounts are still the most complained...
Strategic Working Group publishes report on Open Banking
The FCA has welcomed a report by the Strategic Working Group , published as an initial step towards publication of recommendations for the vision for open banking in the future. The Joint Regulatory Oversight Committee...
FCA cracks down on crypto ATMs
No crypto ATM operators are currently registered with FCA for AML supervision, so FCA is cracking down on all unregistered machines and their operators. Following a joint operation with West Yorkshire Police, it has...
FCA censures Amigo for inadequate affordability checks
FCA has publicly censured Amigo Loans Ltd following a finding that it did not have appropriate processes in place to assess borrower and guarantor circumstances before granting loans for a period of around 18 months...
Treasury consults on BNPL legislation
Treasury has published the long-awaited consultation on draft legislation to bring those who offer Buy-Now-Pay-Later and similar products within the scope of financial regulation. It has published both the draft law...
PSR publishes 2022 review
PSR has looked back on its major work and developments during 2022. Chris Hemsley noted that post-pandemic, there was a lot of significant discussion with consumer groups, businesses and payment firms. PSR’s 5...
Wolfsberg Group updates DDQ materials
The Wolfsberg Group has updated various documents: the new version of the Correspondent Banking DDQ includes a new section on fraud, sanctions policies, additional questions and formatting changes; the new version of...
PRA updates Remuneration SS
PRA has updated its SS2/17 on Remuneration following its policy statement. The changes took effect from 10 February, and add a new section covering PRA’s expectations that in principle, unvested, deferred claims...
FCA seeks views on sustainability changes in firm governance
FCA has published a discussion paper looking at how it can best support the role of the financial sector in the transition to net zero and more broadly to a sustainable future. While the paper will be of interest to all...
PSR consults on reporting of APP scams
PSR has issued a consultation on guidance to help PSPs to provide the right data when reporting APP scams to the regulator. The first collection is coming soon, with firms’ submissions due in May, with the first...
FCA feeds back on synthetic data
FCA has issued its feedback statement following its call for input on synthetic data. The call for input looked to probe how best to access quality data to help develop new products and services while protecting...
Economic Crime Bill continues Lords progress
The Economic Crime and Corporate Transparency Bill is continuing its progress through the House of Lords, with its second reading on 8 February. During the reading, there was significant discussion about fraud...
BoE speaks on digital pound
Sir Jon Cunliffe has spoken on the digital pound, as the BoE and Treasury launched their consultation. He noted that, while no firm decision can be taken on implementing the digital pound, the taskforce is now moving to...
Treasury and BoE consult on digital pound
Treasury and BoE are consulting on the potential creation of a digital pound, which would be issued by the BoE. It would be interchangeable with cash and could be used for in-store and online payments. No formal...
FSMB 4th session in Grand Committee
The 4th sitting of the Grand Committee on the FSM Bill took place on 6 February. The Committee discussed: financial inclusion, both as a general principle and in terms of the reality of retail investors being excluded...
Edinburgh Reforms inquiry hears evidence
The Parliamentary Committee on the Edinburgh Reforms is currently accepting evidence, and held a formal session on 1 February at which Sir John Vickers and Sir Keith Skeoch gave evidence on ring-fencing. The evidence is...
FCA seeks redress for unauthorised firm investors
FCA has started High Court proceedings against Argento Wealth Limited and its sole director, Daniel Willis. It alleges the firm unlawfully took around £2.8m as deposits under loan agreements and/or as part of an...
FCA warns again about BSPS offers
FCA says it has now identified 15 more firms which have been making unsolicited offers to former BSPS members, in what it believes is a deliberate attempt to exclude them from the redress scheme that takes effect from...
Treasury Committee critical of scam reimbursement plans
The Treasury Committee has published a report criticising both the “painfully slow” implementation of mandatory reimbursement for fraud victims and the PSR’s proposals that banks and building societies...
FCA reminds crypto firms of upcoming fin prom rules
FCA has reminded all crypto firms of the Government’s intention to bring all promotions to UK customers by cryptoasset firms within the scope of the financial promotions regime. Once the changes take effect, any...
FSM Bill amendment list updated
The latest group of marshalled amendments to be discussed at FSM Bill Committee stage in the Lords has been published. At today’s sitting, the Committee will start discussing amendments from Clause 24 onwards...
FCA publishes supervisory notice on high-cost lender
FCA has published a “further first supervisory notice” to Indigo Michael Limited, a high cost consumer credit lender. It first imposed a notice on the firm in July 2022, and now requires that: the firm must...
FCA publishes decision notice on SMF application
FCA has published a decision notice to Saranac Partners Limited. FCA has decided to refuse the application made by the firm for Thomas Kalaris to become its chief executive and hold the SMF1 and SMF3 functions. It...
FCA updates on asset management supervision
FCA has published a Dear CEO letter on its asset management supervision strategy. FCA has restructured so that these firms are now supervised by the Buy-Side Directorate. There are around 1,000 firms in the portfolio...
FCA publishes Consumer Duty sector letters
FCA has published a set of Dear CEO letters it has sent to several sectors on preparation for the Consumer Duty. It has so far written to: asset management, custody and fund services and alternatives; consumer...